In discussing alcohol distribution a new concept called “The Long Tail” needs to be understood first. “The Long Tail” is a concept by Chris Anderson. He introduced this term in 2004, discussing innovative business strategies like Amazon.com and Netflix have been using when it comes to distribution. The concept is about the frequency of distribution. By looking at the alcohol distribution and inventory costs the businesses selling alcohol can realize their profit. Selling small volumes of hard to find items is often more lucrative than selling large volumes of popular items. Those who purchase “non- hit” items or the harder to find items are going to be in the long tail category.
To give an example of alcohol distribution as it pertains to the long tail concept one must look at a distributor like Anheuser Busch who has been most successful in using the long tail in alcohol distribution. Anheuser Busch created a division called Long Tail Libations in which they offer niche liqueur products. These products are often regional brands. The company helps these small corporations sell their products online and in retail stores.
Anheuser Busch is a large enough company that they can be in charge of their alcohol distribution. It makes it easier for the company to provide niche beers both in retail stores and online. They have the reach to get the results they need. As of 2007 Anheuser Busch has increased their brands to over 80 different products that include organic beers, drinks for women, and even microbrews.